XM Satellite Radio to buy back floaters due 2013 in change-of-control offer

By Susanna Moon

Chicago, Aug. 5 - XM Satellite Radio Inc. said it began a cash tender offer to purchase any and all of its outstanding senior floating-rate notes due 2013.

The offer will expire at 12:01 a.m. ET on Sept. 4.

The total payment for each $1,000 principal amount of the notes will be 101 plus accrued interest to the payment date.

XM currently has $200 million of the notes outstanding.

The company plans to use cash on hand to finance the repurchases.

On Feb. 19, 2007, parent XM Satellite Radio Holdings Inc. entered into an agreement to merge with Sirius, which was completed on July 28.

Under terms of the floaters, the merger constitutes a change of control, which requires XM to offer to repurchase any and all of the outstanding notes within 30 days of the completion of the merger.

Global Bondholder Services Corp. (866 924-2200 or 212 430-3774) is the information agent.

XM is a satellite radio company based in Washington.

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